In a significant move for the future of Kenya’s sugar industry, President H.E. Dr. William Ruto has officially signed the Sugar Bill (National Assembly Bills No. 34 of 2022) into law. This legislation aims to revitalize the sector, enhance growth, and provide much-needed support to cane farmers across the nation.
A collaborative effort
Sponsored by Hon. Emmanuel Wangwe and co-sponsored by Sen. David Wakoli, the Sugar Bill garnered approval from both the National Assembly and the Senate, with final approval on October 29, 2024. The enactment of this law is seen as a critical step toward addressing the numerous challenges that have plagued the sugar industry since 2013, including high production costs, reduced land under sugar cultivation, market access issues, and ineffective management practices.
Key features of the Sugar Bill
The newly enacted law introduces a comprehensive framework for regulating and promoting the sugar sector. A key highlight is the re-establishment of the Kenya Sugar Board, which will now oversee the industry’s standards, pricing, and trade both locally and internationally. The Board will consist of 14 members, representing farmers, millers, government agencies, and the Council of County Governors, ensuring that all stakeholders have a voice.
To tackle the issue of unregulated production and protect farmers, the Act mandates the appointment of crop inspectors to enforce compliance and uphold industry standards.
Supporting cane farmers and infrastructure development
A major provision of the Sugar Bill is the introduction of a Sugar Development Levy, capped at 4% of the value of domestic sugar and the Cost Insurance Freight (CIF) value of imports. This levy will generate funds allocated to crucial areas, including:
- 15% for factory development and rehabilitation
- 15% for infrastructural development in sugarcane-producing regions
- 10% for the administration of the Kenya Sugar Board
- 5% to support sugarcane farmers’ organizations
Cane farmers will see direct benefits, with 40% of the levy directed toward cane development and 15% toward factory rehabilitation, aimed at boosting productivity and infrastructure in sugar-producing regions.
Additionally, the Kenya Sugar Research and Training Institute will receive 15% of the development levy, enhancing its capacity to drive research and training initiatives, thereby strengthening Kenya’s competitive edge in both local and international sugar markets.
Establishment of a sugar arbitration tribunal
To address disputes within the industry, the Act establishes a 5-member Sugar Arbitration Tribunal, chaired by a qualified judge. This tribunal will oversee disputes related to cane pricing, contract farming, and other issues between farmers and industry players, ensuring a fair and efficient resolution process.
The signing ceremony was attended by notable leaders, including Deputy President H.E. Prof. Kithure Kindiki, Prime Cabinet Secretary H.E. Musalia Mudavadi, Speaker of the National Assembly, Hon. Moses Wetang’ula, Speaker of the Senate, Hon. Amason Kingi, Leader of the Majority Party, Hon. Kimani Ichung’wa, Majority Whip, Hon. Naomi Waqo, Sen. Tabitha Karanja, Attorney General, Ms. Dorcas Oduor, Treasury Cabinet Secretary, Hon. John Mbadi and Clerk of the National Assembly, Mr. Samuel Njoroge
